Lightyear ESG investing

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ESG investing at Lightyear as of December 2024

If you're investing for the long-term and can afford to look beyond simple profits and fees, ESG (environmental, social and corporate governance) investing is a great way to contribute to a more sustainable future.

Unfortunately, Lightyear does not really cater to ESG investors, offering little to no ESG-specific products, tools or information.

My key findings in a nutshell

Adam Nasli

Trading • Safety • Market Analysis

I've thoroughly tested Lightyear services with our analyst team by opening a real-money account and these are my most important findings:

ESG investing focuses on companies' environmental and social practices and impact
Lightyear offers limited ESG-themed assets to invest in
Lightyear provides limited tools to find and learn about ESG investments

Lightyear ESG services
	Lightyear Lightyear
Overall score Based on BrokerChooser's methodology, which incorporates close to 500 factors	4.5 stars
ESG score	1.5 stars
ESG research quality	-
ESG ETFs	13
ESG funds	-
ESG education quality	-

Data updated on December 9, 2024

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What is ESG investing?

Are you a long-term investor? Then you probably care deeply about what the world will look like in 20 or 30 years. If you want to help bring about a future that is environmentally sustainable and socially inclusive - and can afford to set aside some or all of your savings for this purpose - we suggest you turn your attention to ESG investing.

What is ESG investing? It is an increasingly popular investment trend that involves taking into account environmental, social and corporate governance factors when deciding what sectors or companies to invest in.

Environmental criteria include companies' contribution to (or its efforts to prevent) climate change, pollution or biodiversity loss
Social criteria focus on treating employees, customers and suppliers fairly; involvement in armed conflict or humanitarian crises; or efforts to tackle public health issues such as those related to smoking or alcohol consumption
Corporate governance criteria involve transparency, protecting shareholders' rights, and leadership quality

The good news is that returns on ESG-focused investments are not necessarily inferior to those on non-ESG investments, although fees may be higher.

If you need more information, read our comprehensive introduction to ESG investing, or check out some helpful ESG investing strategies.

ESG assets at Lightyear

You can always make your own judgment whether a specific stock is ESG-compatible, but ESG investing is easiest via special ESG-themed ETFs (exchange-traded funds) or mutual funds. These are often special versions of popular index funds (such as those tracking the S&P 500) that give a larger weight to ESG-friendly stocks within the index or drop companies that engage in environmentally or socially harmful practices.

Here's what Lightyear and its closest competitors have to offer when it comes to ESG-themed instruments:

Lightyear and competitors ESG product selection
	Lightyear Lightyear	Trading 212 Trading 212	Revolut Revolut
ESG ETFs	13	150	-
ESG funds	-	-	-
Stock and ETF fee scores	4.7 stars	5.0 stars	3.6 stars
Mutual fund fee scores	0.0 stars	0.0 stars	0.0 stars

Data updated on December 9, 2024

ESG tools at Lightyear

How can you tell if a stock has a good ESG record? Some brokers have great screeners that help you find the best ESG stocks among the thousands of stocks out there. Short of that, a good search function on your broker's trading platform can help you find ESG-themed ETFs or mutual funds. Some brokers also offer educational articles or webinars on ESG investing.

Here's how we rated these tools at Lightyear and some of its immediate competitors:

Lightyear and competitors ESG tool quality
	Lightyear Lightyear	Trading 212 Trading 212	Revolut Revolut
ESG research quality	-	-	-
ESG education quality	-	-	-

Data updated on December 9, 2024

Best brokers for ESG investing

Do you want to zoom out and pick the best broker for long-term investment based on a full set of criteria including fees, trading platform experience and product selection? Look no further than our list of the best brokers for ESG investing.

Check out this short video for a behind-the-scenes peek into how our experts personally test and evaluate brokers.

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ESG investing at Lightyear

ESG investing at Lightyear as of December 2024

What is ESG investing?

ESG assets at Lightyear

ESG tools at Lightyear

Best brokers for ESG investing

Further reading